SMBC Nikko Securities has defended its title as the top sales provider in Japan.
After a meteoric jump from third place to first in the 2021 results, the national company has again exceeded Institutional investor‘s All-Japan Sales Team.
As part of the All-Japan Research Team’s survey – where the company took third place – institutional investors were asked to rank companies with the best overall sales teams, while taking into account their performance on six selling attributes.
SMBC Nikko was recognized as number one in four of them: idea generation; knowledge and perception of the market; service and responsiveness; and understand customer needs. Daiwa Securities Group was ahead for adding value to research, while Goldman Sachs was praised for providing global context to sales.
Despite winning this attribute, the US company ranked just outside the top five in sixth place, up one spot from 2021. Daiwa Securities Group improved one spot to take the second place overall this year, while JPMorgan Chase & Co. fell from fifth to third in 2022. Nomura remained stable at fourth place, while Mizuho fell from second to fifth place.
Kazuhiko Sawanobori, head of APAC sales at SMBC Nikko Securities, attributed the company’s success to its collaborative approach. “Our global sales members are really focused on communicating with customers first, and trying to find out their different demands, and then focusing on the personalized approach based on them with a strong partnership between our research, access to business, commerce and many other members as well,” said Sawanobori.
Citing “current difficult market conditions,” Sawanabori argued that institutional investors need research more than ever. This includes several areas based on financial analysis as well as others such as environmental, social and governance issues, sustainable development goals and global macroeconomic factors.
The top 10 ranking was weighted by how much each respondent spends on commissions on Japanese stocks. In addition to these commission-weighted results, another ranking weighted by assets under management has also been produced.
SMBC Nikko is also at the top of this ranking and Daiwa Securities Group is second, but there has been a slight shuffling of the providers below them. Nomura ranked third here, followed by Mizuho Securities in fourth.
JPMorgan ranked fifth and was also recognized for its ability to incorporate global context into sales – something Shinji Ogawa and Khahlil Kirtman, co-heads of cash stock distribution in Japan, agree. is the strength of the bank and a differentiator in a strong national field.
“Domestic competition certainly has a strong offering in the local market in terms of volume and natural connectivity with Japan Inc., but our strength lies in our global access and global reach. That’s what sets us apart,” Ogawa said. “We also believe that our relentless focus on delivering top-notch products combined with the best talent we have can be a winning formula.”
The bank has also focused on diversity when changing and hiring its sales team in Japan over the past year, according to Kirtman. “As the needs of our customers continue to be great, it is important for us to have a diverse set of talent in our sales organizations and our leadership team,” he said. “Diversity helps bring flexibility in our approach to clients, and it has also proven to drive creativity and innovation within our team.”
These innovations are also aided by technology, which the bank continues to improve as the world enters its third year of distributed workforces and customers. “Technology is also a key ingredient and it’s something we continually invest in,” Kirtman said. “This year, we focused on leveraging technology to improve our customers’ ability to access JPMorgan-hosted events, such as custom portals for event access.